Insurance is an agreement between you and the insurer for providing you financial coverage against different mishaps of life such as health issue, vehicle accident, etc. For securing different sectors of life, you have to purchase different insurance plans like for health issues a health insurance policy, for repair of your car a car insurance plan and likewise. Insurance companies like United India Insurance Company provides you insurance products of different sectors such as health, travel, car, two-wheeler, etc. However, in return of the services provided by your insurer, you have to pay the premium regularly.
While selecting an Insurance plan, many of you take advice from your friends or some of you blindly believe the advertisement shown on TV or somewhere else. However, it is suggested to do your homework and ask the following questions to your insurance agent before purchasing any insurance plan:
Question 1: Are you an insurance broker or insurance agent?
Answer: While both the terms ‘broker’ and ‘agent’ seem the same, but there is a huge difference between them. An insurance broker is a person who deals with multiple insurance providers and provides you quotes of many companies. In this way, he/she gives you option to compare and select the insurance policies of different insurance provider.
On the other hand, an insurance agent deals with only one insurance provider and doeseasy jobs such as paperwork of that insurer. So, before understanding the insurance plans offered, ask this question.
Question 2: How much does my plan cover and will it meet my requirements?
Answer: The sum assured offered by your insurance plan must be enough to fulfill your requirements. For example, if you have a group health insurance plan of Rs.10, 00, 000 and at the end of the financial year the total claims exceed its limit (Rs.50, 00, 000), it can be problematic for you. This is because you have to bear the expenses from your own pocket.
Therefore, it is suggested to know your requirements and take the sum assured accordingly. Discuss your needs with your insurance agent and let him/her decide the appropriate limit of the sum assured.
Question 3: Can my policy be personalized?
Answer: Another question that you should ask your insurance agent is the personalization of your policy. The insurance policy that you are taking should fulfill all your requirements. To understand this, let us take an example, a normal fire insurance plan has the exclusions for any damage to chandeliers, paintings, and artwork. However, if you are a painter and own an art gallery, then your fire insurance policy must cover all your paintings and other artwork against damage or loss. Therefore, in this case, you have to have a customized fire insurance plan that covers all these things in affordable rate.
Question 4: How will the insurance agent be useful in claim settlement?
Answer: With the insurance agent's credentials, and inclusions of the policy with its terms and conditions, you must also understand the claim settlement process of your insurance provider. You must also ask your insurance agent about his/her role when you file your claim. Understand the claim settlement process from your insurance agent carefully and ask his/her availability at the time of claim settlement.
Question 5: Explain the exclusions of the insurance policy?
Answer: With inclusions, you must also ask your insurance agent about the exclusions of the insurance policy you are taking. Knowing the exclusions gives you an opportunity to make an informed decision as you may have to include multiple add-ons for including protection against various exclusions.
Question 6: What are the premium payment options?
Answer: Almost all the insurance companies offer several options of premium payment. While some companies charge the complete amount for an annual insurance policy, there are many insurance providers who offer easy payment options as well.
Question 7: Ask for discounts and deals
Answer: It is suggested to not to pay the insurance amounts upfront instead know all the ongoing deals and offers of the insurance provider. This is because most of the insurance companies offer attractive schemes.
Question 8: Ask for deductibles.
Answer: Deductible is the amount that you have to pay out of your own pocket during claim settlement. Even though the deductible lower downs your insurance premium but it can seem huge while filing a claim against a mishap. Therefore, it is suggested to ask about the deductibles from your insurance agent before finalizing a policy.
Final Words:
A good insurance agent always welcomes all your queries and tries to resolve most of them. Moreover, this kind of interaction with your agent definitely improves the transparency of the insurance company and insurance plan that you are taking. Getting the answers to these above-mentioned questions gives you confidence about the insurance plan that you are opting. One reason behind the popularity of United India Insurance Company is its valuable agents, so you can easily rely on them.
Peter is the is an entrepreneur disguised as a certified financial planner, author and blogger. His mission is help future generations achieve financial freedom by developing strong money habits and unleashing their entrepreneurial spirit.